One size does not fit all: On the heterogeneous impact of free trade agreements

April 28, 2017

There is a large empirical literature examining the effects of free trade agreements. However, most studies to date have focused on a common average effect across all agreements or have assumed that the effects are common across similar types of agreements. This column examines heterogeneity in the effects of free trade agreements. Along with across-agreement heterogeneity, substantial within-agreement heterogeneity is observed. The effects of a specific agreement can be starkly different for two trading partners.

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Topics: WORLD TRADE ORGANIZATION (WTO) BILATERAL INTEGRATION REGIONAL TRADE AGREEMENTS (RTAS) TRADE BARRIERS

Authors: SCOTT BAIER YOTO YOTOV THOMAS ZYLKIN

Publishing Institution: VOX - CEPR'S POLICY PORTAL

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